05-16-2017 City Council Study Session Packet
City of Grand Island
Tuesday, May 16, 2017
Study Session Packet
City Council:
Linna Dee Donaldson
Michelle Fitzke
Chuck Haase
Julie Hehnke
Jeremy Jones
Vaughn Minton
Mitchell Nickerson
Mike Paulick
Roger Steele
Mark Stelk
Mayor:
Jeremy L. Jensen
City Administrator:
Marlan Ferguson
City Clerk:
RaNae Edwards
7:00 PM
Council Chambers - City Hall
100 East 1st Street
Grand Island Study Session - 5/16/2017 Page 1 / 9
City of Grand Island Tuesday, May 16, 2017
Call to Order
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open
Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room
as required by state law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
Invocation
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
Grand Island Study Session - 5/16/2017 Page 2 / 9
City of Grand Island
Tuesday, May 16, 2017
Study Session
Item -1
FY 2018 Budget Discussion
Staff Contact: Marlan Ferguson
Grand Island Study Session - 5/16/2017 Page 3 / 9
Council Agenda Memo
From:Marlan Ferguson, City Administrator
Meeting:May 16, 2017
Subject:FY 2018 Budget Discussion
Presenter(s):Renae Griffiths, Finance Director
Marlan Ferguson, City Administrator
Background
During the budget process for the 2017 Fiscal Year Budget much discussion was held
concerning future budgets and sustainability. The Mayor and City Council have
determined to have a balanced budget for Fiscal Year 2018. In order to accomplish that
goal there will need to be some tough decisions made. Currently the City’s expenditures
in the general fund are growing at a faster rate than the revenues in the General Fund.
This is the result of a number of events, including becoming an MSA community which
causes salaries to increase substantially by way of comparing to a different array of
Cities. At the same time the City made the decision after a recommendation from a Public
Safety Study completed by the ICMA; to increase the number of police officers and
support staff in the police department by 17 FTE since 2012. In the FY 2017 Budget 62%
of the expenditures in the General Fund is for the Public Safety Departments. In addition
77% of the expenditures are for personnel costs. As you know several study sessions
were held to review various departments. The Administration has been reviewing
expenditures, revenues and other ways to balance the budget.
Discussion
Tonight’s study session is for the purpose of discussing and reviewing the FY 2018
budget of expenditures and revenues. We want the City Council to have a good
understanding of the current budget concerns and look at long term planning. The
administration is recommending that no more than 70% of the general fund revenues will
be used for personnel expenses.
Conclusion
This item is presented to the City Council in a Study Session to allow for input from the
council members. No action will be taken tonight since this is a study session.
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5-16-172018General Fund and Streets DepartmentBudget Based on RevenuesGrand IslandStudy Session - 5/16/2017Page 5 / 9
70% for Personnel CostsRemaining 30% split between:Operating ExpensesCapital ExpensesDebt PaymentsBudget Based on RevenueGrand IslandStudy Session - 5/16/2017Page 6 / 9
Estimated 2018 General Fund and Streets Department Revenue is $41,057,2822017 Budgeted Expenditures is $45,931,621Needed reduction for 2018 is $4,874,339Impact of ChangeGrand IslandStudy Session - 5/16/2017Page 7 / 9
Breakdown of needed cutsCategories2017 Budgeted ExpensesDesired $Desired % of Rev.(Decrease)/IncreasePersonnel Services 30,622,364 28,740,097 70.00%(1,882,267)Operating Expenses 11,819,693 9,443,175 23.00%(2,376,519)Capital Outlay‐Departments 2,768,676 2,463,437 6.00%(305,239)Capital Outlay‐Debt 720,888 410,573 1.00%(310,315)45,931,621 41,057,282 100.00%(4,874,339)Grand IslandStudy Session - 5/16/2017Page 8 / 9
Property Tax IncreaseChange to Therms for Natural Gas RevenueStormwater ChargeRental Car Occupation TaxRevenue from Utility Fund(s)Additional Potential RevenuesGrand IslandStudy Session - 5/16/2017Page 9 / 9